Seattle becomes first USA city to let Uber, Lyft drivers unionize

The Seattle City Council voted 8-0 Monday to enact an ordinance giving taxi, for-hire and Uber drivers the ability to unionize. The legislation approved by the City Council Monday is seen as a test case for the changing 21st century workforce. The New York Times observes that if the right were conferred upon contractors working for the likes of Lyft and Uber, it would be a national first.

In the meantime, drivers have officially begun to organize, forming the App-Based Driver’s Association through the Seattle Teamsters Local 117. He added innovation can continue to occur, still it should not be done at the expense of staff. … “This bill was only introduced out of necessity after witnessing how little power drivers themselves had in working for a living wage”, said Councilmember Mike O’Brien, in a statement. On one hand you have the federal law that prohibits unionization of contract workers (as the law’s written, NYT says that this amounts to price fixing); federal law trumps city laws. Now that it’s passed, how the system will work is that all drivers who have a Seattle for-hire vehicle licenses that have performed what the city calls a minimum threshold of trips can be eligible to participate in the union.

A spokesman from Uber did not directly comment on the legislation but said the company supports its drivers.

The council passed the measure unanimously.

“I said consistently during this debate that I support the right of workers to organize to create a fair and just workplace”, he said. He also said he has “grave concern” about the costs of administering the law and defending it in court. By clearing drivers to unionize, Seattle is attempting to create a present-day solution to thorny employment questions that might not be resolved for a very long time.

But farm workers and home health care workers, who are also not addressed by the federal law, have been allowed to unionize under state law, which could give Seattle a defense for its action.

Whether Seattle’s ordinance will withstand an inevitable slew of legal challenges hinges on the central issue of the so-called gig economy: Are Uber and Lyft drivers employees? “Drivers say that with flexible and independent work with Uber, 50 percent of them drive fewer than 10 hours a week, 70 percent have full-time or part-time work outside of Uber and 65 percent choose to vary the hours they drive 25 percent week-to-week”. Then a nonprofit organization – most likely a union – would use the list to contact the drivers. Rival Uber simply stressed that its drivers appreciate the flexibility that comes with driver for an on-demand ride-hailing platform.